Snowy Hydro Corporatisation Amendment (No New Fossil Fuels) Bill 2021 [No. 2]

High-Level Summary
The bill proposes to amend the Snowy Hydro Corporatisation Act 1997 to prohibit Snowy Hydro from developing, acquiring, or operating new fossil fuel-based electricity generation capacity.

Summary
The bill amends the Snowy Hydro Corporatisation Act 1997 to introduce a prohibition on Snowy Hydro and its group companies from being involved in the development, construction, acquisition, or operation of new fossil fuel-based electricity generation capacity. This prohibition applies only to 'new' capacity, excluding projects from assets owned, controlled, or operated before the bill's commencement, or those under binding contracts entered into before the commencement. The bill also includes a new objects clause to contextualize these prohibitions within the goal of reducing Australia's greenhouse gas emissions. From the explanatory memo:
The Bill would also insert a new objects clause, a new paragraph in the simplified outline, and a number of new definitions in order to facilitate these changes.

Argument For
Normative Bases
  1. Environmentalism
  2. Pro-Democracy

The bill should be supported because it aligns with environmental goals by prohibiting new fossil fuel developments, thereby contributing to the reduction of greenhouse gas emissions. This approach supports a transition to cleaner energy sources, which is crucial for mitigating climate change [Judgment]. Moreover, it reflects democratic values by addressing public concerns about climate change and promoting sustainable energy policies that benefit future generations.


Argument Against
Normative Bases
  1. Propertarianism
  2. National Prestige/Patriotism

The bill should be opposed because it may limit Snowy Hydro's competitive advantage and strategic flexibility by restricting its ability to invest in potentially cost-effective fossil fuel-based projects. This could hinder economic growth and national energy security if renewable sources fail to meet demand [Judgment]. Additionally, it may impact existing property rights and investment plans made under the assumption of a balanced energy mix.


Date:

2021-05-13

Status:

Before Senate

Sponsor:

WATERS, Sen Larissa

Portfolio:

Unspecified

Categories:

Climate Change / Environment, Energy Policy, Infrastructure

Timeline:
13/05/2021
27/07/2022

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